We know that word of mouth is the best marketing system. Why do some businesses generate so much business from word-of-mouth referrals, and other businesses don’t?

When someone refers you, they are taking a risk. When they tell their friends, colleagues, or clients about you, they are putting their own reputation on the line. They are basically trusting that you won’t let them down. If you make a mistake or under deliver, they look bad by giving a bad referral.